Fuel cell and hydrogen technologies are to be stimulated by £7 million worth of new government investment through the Technology Strategy Board.
A total of 15 demonstrator projects are to be funded, according to Lord Hunt of King's Heath, Minister of State for Energy.
Announcing the investment during a visit to Johnson Matthey Fuel Cells in Swindon, he said: "Cleaning up our energy supply and the fuel we use for transport will give the UK the opportunity to develop the low carbon industries of the future.
"Fuel cells and hydrogen can play a key role in cutting CO2 emissions and reducing reliance on fossil fuels… Through this boost for hydrogen, innovative businesses like Johnson Matthey are well placed to benefit from the move to low carbon."
And Iain Gray, chief executive of the Technology Strategy Board, added: "By providing capital funding towards the cost of demonstration, this important programme will enable British companies to collaborate to commercialise fuel cell and hydrogen technologies.
"We expect the technologies that will be developed and demonstrated to make real progress towards market adoption, providing significant global opportunities for the British companies involved."